What is The Value of a Representative? | It is important to have an experienced professional on your side who knows the tax collection and audit processes and what is likely to occur at each stage. The prospect of incurring additional taxes, penalties and interest can be upsetting and stressful. The audit process itself can even seem threatening. Equally important is the representative's role as a buffer between the taxpayer and the taxing authority. Collection Problems I help taxpayers who owe more taxes than they are able to pay get their problem under control. That usually means establishing a payment plan. In some cases it means demonstrating that a taxpayer is able to pay only part of what they owe or even that they are unable to pay anything. This is what the IRS calls "resolving" a case. Also read What does it mean to resolve a tax debt? Delinquent Tax Returns Before the IRS can reach a resolution a taxpayer must be "in compliance." That means that all returns must be filed so the the IRS knows the total taxes owed. Audits I have been dealing with IRS & state tax audits for over 25 years and know that in most cases it is not a good idea for taxpayers to represent themselves. This is especially true when businesses have been part of the audits. My view is not a reflection on the taxpayers' innate capabilities to learn and understand complex or new situations or the quality of their records. It is knowing the unique rules, processes and culture of the IRS. Someone who has not encountered those circumstances can find it difficult to know what to expect at every stage of their case. Frankly there will be surprises that even an experienced representative may not always be able to anticipate. |